have my cake and eat it too..

October 29, 2008 2:38 PM

if i start a local restaurant review blog, and attempt to make an income from it, via advertisements on my page or any other means, can i take tax deductions for the costs of my meals that i write about and any other associated costs?
posted by fumbducker to work & money (9 answers total)

I would think yes, but only to the extent of the revenue you make , ie. you couldnt create a tax loss. There has to be a reasonable prospect of making profit.
posted by canoehead at 2:49 PM on October 29, 2008

If you really want to start getting into deductions you might want to look into obtaining a DBA or LLC first.
posted by Burhanistan at 2:54 PM on October 29, 2008

As has already been mentioned, you can use your business expenses to offset your business income. I believe you may also be able to take this years startup losses against future revenue for some period of time.
posted by Good Brain at 3:53 PM on October 29, 2008

Yes, you can even take a loss.
posted by itsamonkeytree at 3:53 PM on October 29, 2008

I should add, if its a hobby you can't take a loss.
posted by itsamonkeytree at 3:54 PM on October 29, 2008

you don't need a DBA or a LLC to take deductions for your business. an accountant can advise you if it is advantageous to you financially to do so.

IANAA, but the one thing about meals is that there are specific IRS guidelines about how much you can deduct. In your case, the meals are technically research, and it would depend on the accountant that you have as to whether they are aggressive or cautious. for example, a music blogger who buys tickets to concerts they then review, even though the ticket price is should be research, and needed for doing what they do, it's technically goverened by the IRS entertainment deduction limits. however, i know people whose accountants feel confident that they would make and win the case that it should be classified as research.

meals are a different category in that you technically can only deduct them if you are away from home. not just 'away from your principal place of business' which is what most people believe. there is a distance/time/necessity test attached to whether or not you can. most people interpret the rule incorrectly and think "oh, i'm not home, i'm on my way to a client across town, so if i buy coffee at starbucks I can deduct it because i'm travelling or away from my principal place of business". i was one of those people which is how i know.

if you're going to play this game with this expense, then I would find an accountant to do your taxes who can advise you of all of the pertinent laws.

short answer: you need to talk to an accountant about this. meals are an odd duck.
posted by micawber at 3:55 PM on October 29, 2008 [1 favorite]

The way restaurant reviewers usually deal with this is simply have someone else pay for the meal. The newspaper, magazine, website, etc. that employs them can obviously expense the meal, no questions asked, and the reviewer just puts it on the company credit card. This isn't problematic, because the reviewer isn't trying to get a deduction for themselves and it's clear from the arrangement that someone is actually running a business here.

The general rule is that you can deduct expenses used for a venture which is intended to produce income, even if the venture results in a loss. But the IRS isn't stupid. They, and the Tax Court, are pretty good at figuring out what something really is. So if you've got a day job and try to do this on the side, you might be able to get away with taking a deduction for one year, arguing that you intend to quit your job. But if you don't quit your job and keep expensing and deducting meals for a personal website which consistently fails to turn a profit, they're gonna audit you, and you're gonna have to pay up.

I'd ask your accountant or lawyer before you tried anything like this.
posted by valkyryn at 5:23 PM on October 29, 2008

You would be absolutely amazed at what you can write-off in many situations when it comes to business.

I highly recommend Sandy Botkin's site as a resource. (Disclaimer: I am not associated with this company except for being a satisfied client of their information products)

I've been audited 2 times over the past several years and everything I learned in that course was spot on. All it takes is good recordkeeping and attention to detail and obeying the law. Even better, aside from your meals, is to invite someone you can interview for the review blog which may also pave the way for entertainment expenses. Your only limits are the current percentages or dollar limitations to the different types of expenses you claim.

Check out the info on the site above for reference and then talk to your CPA or accountant (if you don't have one - GET ONE) There may be different variations in your state or county that are individual to you and your business that you'll want expert advice on. If you follow the rules, you can really help reduce your taxable income (You don't mention, but I assume you have a "Day job" as well?) and this will offset that income as well.


I eat/entertain several times a month this way and it's always nice to know it doesn't cost nearly so much as I sign the receipt for. Another recommendation is this book. A nice way to network and increase your chances for future success. Good luck!
posted by emjay at 5:27 AM on October 30, 2008

thanks for all of the good answers. i do have a day job, was thinking of doing this on the side as i think it would be a fun way to potentially make some side money..
posted by fumbducker at 7:32 AM on October 30, 2008